[GIS] Extracting road and building features from raster data using ArcGIS Desktop

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I work with raster data and my task is to digitize a big image. This consumes much time just for digitizing roads and buildings!

I'm looking for tools to simplify working on raster data to digitize features, such as automate road extraction, smooth features, etc.
For examples, check these videos: RoadTracker & Overwatch.

I have ArcGIS 9.3 and 10 but other suggestions are welcome too.

Best Answer

Your question is kind of similar to one I asked before about land cover extraction. The solution that I was given was to use the open source GIS software called GRASS (see my question/answer below).

Land Cover Feature Extraction from Satellite Imagery

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